Welcome to the Welkom op de jaarlijkse Annual General Meeting - - PowerPoint PPT Presentation

1 Welcome / Welkom

Welcome to the Annual General Meeting

• f Shareholders

In order to hear a simultaneous translation in English please choose channel 11 Welkom op de jaarlijkse Algemene Vergadering van Aandeelhouders Voor het beluisteren van een simultaanvertaling in het Nederlands kiest u kanaal 10

Helping people achieve a lifetime of financial security

Welcome – Welkom

The Hague, May 18, 2018

Annual General Meeting of Shareholders Algemene Vergadering van Aandeelhouders

3

Rob Routs Chairman Supervisory Board

• Voorzitter Raad van

Commissarissen

Welcome / Welkom

4 Welcome / Welkom

Welcome to the Annual General Meeting

• f Shareholders

In order to hear a simultaneous translation in English please choose channel 11 Welkom op de jaarlijkse Algemene Vergadering van Aandeelhouders Voor het beluisteren van een simultaanvertaling in het Nederlands kiest u kanaal 10

5

Opening 1

Agenda item 1 / Agendapunt 1

6

2017 Business overview 2 Presentatie over de gang van zaken in 2017 2

Agenda item 2 / Agendapunt 2

Helping people achieve a lifetime of financial security

Becoming a Future Fit Aegon

Alex Wynaendts

CEO & Chairman of the Executive Board

The Hague, May 18, 2018

8

• Our operating environment
• Aegon’s triple transformation
• Strategic
• Financial
• Organizational/cultural
• Conclusions

Today’s storyline

Becoming a Future Fit Aegon 8

Helping people to achieve a lifetime of financial security

9 Our operating environment

Operating in a fast-moving, highly regulated environment

Our society

• Aging – living longer,

healthier lives

• Wealth and health

closely linked

• New technologies

Political

• Increased

uncertainty in key markets

• Emergence of new

international development agenda

Regulation

• Data protection
• Capital
• Distribution
• Reporting

Financial markets

• In 2017, markets

performed well due to low volatility

• Interest rates

increased, but remain low

World economy

• In 2017, continued

improvement

• Relatively low growth

in developed countries

10

Triple transformation

Becoming a Future Fit Aegon

Strategic transformation Financial transformation Organizational/cultural transformation

11

From working life …through guidance and advice… …to trusted provider

• f retail solutions

Strategic transformation

To help people achieve a lifetime of financial security

From product manufacturer to financial services provider

Protection

We protect what’s important to

• ur customers, their families,

their health and their homes

Accumulation

We help our customers save and invest for the future

At & after retirement

We provide our customers with a stable income in retirement, helping to meet costs of care and securing their families’ future

12

Knab in the Netherlands Transamerica

Strategic transformation

Knab has over 175,000 customers; 91% of whom are (very) satisfied Offering funds, savings products and pensions to customers, their employers and financial advisors Transforming into a digital platform business providing customers what they want: relevant solutions and a meaningful experience

Expand relationship with our customers

Aegon UK’s leading platform

Throughout their financial lifecycle

13

Increased focus on digitization and innovation

Usage of data lakes and big data

Strategic transformation

Accelerate innovation Leverage cloud technology Enhancing customer experience

• Greater customer satisfaction and significant uplift in converting

customer leads to sales through new technologies

• Average saving of 10%-20% for each process supported by robotics
• Global standardization of cloud services
• Use of cloud services leads to efficiency improvements and cost savings
• Turn data into meaningful insights for our customers
• Move closer to personalized pricing
• Reduction in claims and frauds through BlockChain

and Artificial Intelligence

• Established Center of Excellence for Digital to accelerate digitization
• Roll-out of digital training programs to employees
• Nearly USD 140 million committed to start-ups and new technologies

14

An integrated responsible business

Strategic transformation

With the ambition to be a trusted partner for prosperous and healthy lives

Helping our customers enjoy prosperous and healthy lives

• Transamerica Wealth + Health

proposition

• In 2017, close to EUR 50 billion

paid out in claims and benefits

Our society benefits from healthy aging

• Leading research on retirement

readiness & well-being

• EUR 325 million invested in elderly

care homes NL and UK

Making our environment healthier and cleaner

• EUR 436 million invested in

renewable energy

• Exclusions on investments in

coal mining and tobacco

15

Triple transformation

Becoming a Future Fit Aegon

Strategic transformation Financial transformation Organizational/cultural transformation

16 Strategic transformation

As a result of execution of strategy

Changed company profile

Responded to changing environment

 Divested over EUR 5 billion of non-core activities since 2010  Transformed from product manufacturer to lifetime service provider

While growing

• ur business

 Generated average annual sales growth of 15% from 2010 to 2017  Invested in digital business models  Created successful asset manager

Optimized value

• f backbook

 Realized extensive expense savings  Significantly reduced size of run-off portfolio  Active management of underperforming business lines

17

• Assets on platform reached a

record high of GBP 117 billion

Transformation Aegon UK to #1 platform provider

• Sixth consecutive year of positive

external third-party net inflows partly driven by joint ventures

Competitive performance Aegon Asset Management

• Focus on growth of our US business

supported by outsourcing administration

• f around 10 million policies

Partnership Transamerica and TCS Strategic transformation

Investing in growth opportunities

While divesting non-core businesses

• Pay-out annuity and BOLI-COLI,

as well as half of remaining life reinsurance businesses divested

• Sold to Aon for EUR 295 million
• Sold to Athora with net proceeds
• f approximately EUR 195 million

Exceeded target to reduce capital allocated to run-off businesses Divested UMG Sale of Aegon Ireland

18 Financial transformation

Strong deposits growth

29%

2011-2017 CAGR

Significant improvement SII ratio

201%

+44%-points compared to end-2016

Fee-based earnings percentage increased

3x

to 45% since 2010

Total 2017 dividend

EUR 559m

6th consecutive increase

Financial transformation 18

Management actions lead to tangible results

19 Financial transformation 10 20 2015 2016 2017 2018 Target 100 200 300 2016 2017 2018 Target 0% 5% 10% 2015 2016 2017 2018 Target 1 2 2016 2017 2018 Target

Return on Equity increasing

(%)

Cumulative capital return to shareholders

(EUR billion)

Run-rate annualized expense savings

(EUR million) CAGR

• f

>10% EUR 350m* 10% EUR 2.1bn

TCS agreement

Strong sales momentum

(EUR billion)

* EUR 350 million consists of USD 300 million (EUR/USD 1.05), EUR 50 million from NL and EUR 15 million from the Holding CAGR +23%

On track to deliver on key financial targets

20

Triple transformation

Becoming a Future Fit Aegon

Strategic transformation Financial transformation Organizational/cultural transformation

21

• Future Fit cultural change program implemented
• Adapting quickly to new opportunities
• Owning problems and solutions
• One Aegon: building on others’ achievements within Aegon
• Customer at the heart of everything we do
• Maintaining, developing and attracting skills & capabilities
• Center of Excellence for Digital
• Analytical Academy
• Digital accelerator program
• Changing the way we work & how we are organized
• Working with partners, outsourcing certain functions
• Investing in start-up fintech companies
• Structural changes & modernization efforts

Organizational/cultural transformation

Seizing new opportunities and identifying areas of growth

Customer centric Agility Acting as One Accountability

22

PLACEHOLDER FUTURE FIT VIDEO

23 Financial transformation Organizational/cultural transformation 23

Customers and employees responding very positively

10% 13% 25% 48% 2016 2017

1st Quartile 2nd Quartile

Customer Net Promoter Score

(% per quartile; versus peers) 61% 35% 63 65 Feb 2017 Nov 2017

Feb 2017 Nov 2017

Employee engagement

(% per quartile)

24

• Successfully changing the profile of the company
• Transformation continues with increased focus on digitization
• Well-positioned to deliver on key 2018 financial targets
• Positive outlook for future growth

Conclusions

Becoming a Future Fit Aegon

Successful execution on our strategy

25

Annual Report and annual accounts 2017 3 Jaarverslag en jaarrekening 2017 3

Agenda item 3 / Agendapunt 3

26

Reports of the Boards for 2017 3.1 Verslagen van de Raad van Bestuur en de Raad van Commissarissen

• ver 2017

3.1

Agenda item 3.1 / Agendapunt 3.1

Helping people achieve a lifetime of financial security

Our financial performance in 2017

Matt Rider

CFO & Member of the Executive Board

The Hague, May 18, 2018

28

• Year of strong growth in earnings

and capital generation

• Capital position significantly

improved

• Management actions drive quality
• f capital
• Conclusions & key priorities

Our financial performance in 2017

Today’s storyline

Our financial performance in 2017 28

Helping people to achieve a lifetime of financial security

29

Year of strong earnings and sales growth

Our financial performance in 2017

Capital position significantly improved

Underlying earnings EUR 2.1 billion + 10%

compared to 2016

Sales EUR 16 billion + 36%

compared to 2016

Operating expenses EUR 3.9 billion + 3%1)

compared to 2016

Assets2) EUR 817 billion + 10%

compared to 2016

Solvency II ratio 201% + 44%-points

compared to 2016

1) Stable excluding Blackrock & Cofunds acquisitions, restructuring expenses and the divestment of UMG 2) Based on revenue-generating investments

30 Our financial performance in 2017

Strong earnings improvement

1.913 2.103 2016 2017

Underlying earnings before tax

(EUR million) 586 2.361 2016 2017

Net income

(EUR million) 8,0 8,2 2016 2017

Return on equity

(%)

Composition of earnings

(% of UEBT) 42% 45% 58% 55% 2016 2017

 Fee  Rest

31 60 83 100 144 2014 2015 2016 2017 1.138 1.104 969 896 Our financial performance in 2017

Continued strong gross deposits

• Another year of record gross deposits
• 44% growth compared to 2016
• Driven by successful shift towards fee-based businesses
• Strong asset management and UK platform deposits
• Shift away from traditional life insurance continues
• A&H and general insurance sales down 7% to

EUR 885 million, partly due to product exits

• EUR 17 billion net outflows driven by contract

discontinuances in business acquired from Mercer

• Excluding this item, net inflows of EUR 11 billion due to

continued success in Asset Management, UK and NL

Gross deposits & new life sales

Gross deposits (EUR billions) New life sales (EUR millions)

New life sales Right hand side (RH) Left hand side (LH) Gross deposits

32

0% 15% 30% 45% 60% 150 300 450 600 750 900

2010 2011 2012 2013 2014 2015 2016 2017

Fee-based balances (LH) Other balances (LH) Fee-based earnings (RH)

413

Significant shift to fee businesses

• Strong growth in fee-based earnings;

percentage tripled to 45% since 2010

• Organic growth supplemented with

acquisitions to enhance growth; fee- based balances more than doubled to over EUR 680 billion

• Main focus on fee and protection

businesses Development of fee-based balances and earnings

(Balances in EUR billion; underlying earnings in %)

817

Our financial performance in 2017

33

Remaining savings ~70 Annualized run-rate savings ~280

• Continued execution of expense savings program

drives reduction in core operating expenses

• Annualized run-rate savings of approximately

EUR 280 million since beginning of 2016 includes agreement with TCS

• Acquisitions in US and UK in key business lines

add to scale; related cost synergies fully realized by year-end 2018

Our financial performance in 2017

Cumulative run-rate savings since year-end 2015

3.200 3.350 3.500 3.650 3.800

2015 2016 2017

Core Acquisitions Restructuring charges

Declining core operating expenses

(EUR million)

Expense savings of EUR 350 million on track for 2018

Note: Run-rate annualized savings include the recently announced agreement with TCS

34

Local solvency ratio by unit

Year-end 2017 vs year-end 2016

Significant improvement in Solvency II ratio

Our financial performance in 2017

• Group Solvency II ratio increased 44%-points
• Strong capital generation of EUR 2.1 billion in 2017
• Successfully recapitalized Dutch unit back to dividend

paying status

• Agreement with DNB on number of open items
• Divested EUR ~1.1 billion of non-core activities in 2017
• Improved capital quality

Group Solvency II improvement

157% 195% 201%

US 440% 472%

RBC

NL 134% 199%

SII

UK 156% 176%

SII

157% 195% 201%

157% 201%

Year-end 2016 Year-end 2017*

Target zone 150% 200%

* Year-end 2017 number is based on the revised method which was confirmed by the DNB on August 8, 2017.

35 340 465 503 534 559 2013 2014 2015 2016 2017 Our financial performance in 2017

A growing and sustainable dividend

Management actions drive free cash flow growth

Growing capital generation

(EUR billion)

Increasing dividends*

(EUR per share; EUR million)

* Dividend per share represents interim and final dividend declared over the year; cash represents amount spent over the year

0.22 0.23 0.25 0.26 0.27 FY 2016 FY 2017 Capital generation 1.0 2.1

Market impacts and one-time items

(0.2) 0.8 Capital generation excluding market impacts & one-time Items 1.2 1.3 Holding funding & operating expenses (0.3) (0.3) Free cash flow 0.8 1.0 Capital return to shareholders 0.9 0.6

36

Long term care block developing in line with expectations

Our financial performance in 2017

Experience in line with expectations

• We review our IFRS assumptions in detail annually
• Over the last two years, actual experience has tracked well against management’s best estimate
• Assumptions underlying statutory reserves are not in all cases in line with best estimate

Successful management actions

• Effective hedging program contributes to strong return on investments in excess of 7%
• Consistently pursued rate increases since 2002; Successful latest round of rate increases
• ~75% of requests completed at expected levels; remainder of requests are pending
• Reinsurance coverage on ~20% of the business with active management of counterparty risk

Intensive monitoring of LTC block

• Management is closely monitoring emerging experience given sensitivity to long-term assumptions
• Average age of policyholders closed block (77 years) leads to high volume of credible claims data
• Rigorous internal and external review of assumptions and reserve adequacy

37 Our financial performance in 2017

Progress on financial targets

Commitment 2017 status 2018 target

Strong sales growth 23%

2015-2017 CAGR

CAGR of 10%

2015-2017

Reduce operating expenses EUR ~280 million

annualized run-rate savings

EUR 350 million

annualized run-rate savings

Increase RoE 8.2% 10% Return capital to shareholders EUR 1.5 billion

cumulative 2016 + 2017

EUR 2.1 billion

cumulative 2016-2018

38

Reports of the Boards for 2017 3.1 Verslagen van de Raad van Bestuur en de Raad van Commissarissen

• ver 2017

3.1

Agenda item 3.1 / Agendapunt 3.1

39

Remuneration report 2017 3.2 Remuneratierapport 2017 3.2

Agenda item 3.2 / Agendapunt 3.2

40

Ben Noteboom Chairman of the Remuneration Committee

• Voorzitter van de

Remuneration Committee

Agenda item 3.2 / Agendapunt 3.2

41

Current Executive Board Remuneration

Fixed compensation:

• No changes to annual base salary in 2017 for Executive Board compared to 2016

Variable compensation:

• Conditionally allocated after completion of performance year, depending on results
• Maximum of 100% as per Dutch legislation for international holdings
• 50% of the allocation is in shares, 50% in cash
• 40% of the allocation is paid out/vests in year following performance year
• 60% of the allocation is deferred and is paid out/vests in the subsequent 3 years, subject to ex-post

assessments

• After vesting, the variable compensation shares are subject to a holding period of 3 years

Agenda item 3.2 / Agendapunt 3.2

Fixed compensation (annual salary) + Variable compensation (max. 100% of annual salary) + Benefits (e.g. pension)

42

Executive Board variable compensation 2017

Performance indicators and results

Agenda item 3.2 / Agendapunt 3.2

Financial and non-financial Group targets

Outcome 2017

Underlying earnings after tax (7.5%)

56.61% CEO

(of 62.5% max)

64.36% CFO

(of 72.5% max)

Return on equity (7.5%) Market consistent value of new business (7.5%) Normalized Operational Free Cash Flows (5%) Return on economic required capital (5%) Objectives measuring corporate responsibility and strategy implementation (e.g. Customer engagement, Employee engagement, Digitization) and Aegon's control environment (CEO 30%, CFO 40%) Personal targets CEO (37.5%)

Strategy execution, Future Fit (Cultural transformation program), Responsible Business, Succession Planning and development

33.75% CEO

(of 37.5% max)

24.75% CFO

(of 27.5% max)

CFO (27.5%)

Financial strategy, Key Performance Indicators, Functional Governance, Talent development

= Below threshold = Between threshold and target = On target or above

43

Executive Board variable compensation 2017

Conditional variable compensation allocated:

• CEO: 90.36% of fixed compensation (2016: 82.25%, 2015: 79.94%)
• CFO: 89.11% of fixed compensation
• 40% of variable compensation to be paid / vest in 2018
• 50% of this is in shares, 50% in cash
• 60% is deferred in three tranches (to be paid / vest in 2019, 2020 and 2021)
• Each tranche is 50% in shares, 50% in cash
• All tranches are subject to ex-post assessments prior to pay out / vesting
• Vested shares have an additional 3-year holding period during which they can not be sold

Agenda item 3.2 / Agendapunt 3.2

44

Remuneration report 2017 3.2 Remuneratierapport 2017 3.2

Agenda item 3.2 / Agendapunt 3.2

45

Implementation Corporate Governance Code 2016 3.3 Implementatie van de Corporate Governance Code 2016 3.3

Agenda item 3.3 / Agendapunt 3.3

46

• Code 2016 - four focus areas:
• Long-term value creation in the company’s strategy and a culture that supports this long-

term value creation

• Adequate systems of control and risk management
• Effective management and supervision thereof, including remuneration
• Functioning of the AGM and the relationship with shareholders
• Aegon already largely complied with the best practices of Code 2016 upon

coming into effect in 2017

Code 2016 & Aegon

General aspects of Corporate Governance Code 2016

47

• Our strategic objectives:
• Loyal Customers
• Operational Excellence
• Empowered Employees
• Optimized Portfolio
• Enhancement of culture supportive to strategy:

Future Fit Program

• Values of Future Fit:
• Agility
• Accountability
• Acting as one
• Customer Centricity

Code 2016 & Aegon

Long-term value creation

Customer centric Agility Acting as One Accountability

Aegon’s purpose: to help people to achieve a life time of financial security

48

• Adequate systems of control and risk management
• Risk Management
• Internal Audit
• External Audit
• Effective management and supervision thereof, including remuneration
• New requirements implemented
• Charters of the Boards and the Committees adjusted
• Functioning of the AGM and the relationship with shareholders
• Aegon Asset Management publishes voting policy plus its voting behavior

Code 2016 & Aegon

Impact on Aegon

49

Implementation Corporate Governance Code 2016 3.3 Implementatie van de Corporate Governance Code 2016 3.3

Agenda item 3.3 / Agendapunt 3.3

50

Annual accounts 2017 and report independent auditor 3.4 Jaarrekening 2017 en accountantsrapport 3.4

Agenda item 3.4 / Agendapunt 3.4

51

Adoption of the annual accounts 2017 3.5 Vaststelling van de jaarrekening 2017 3.5

Agenda item 3.5 / Agendapunt 3.5

52

Voting procedure / Stem procedure

Voting App / Stemmen met smartphone

Prior to the voting

• You have logged in to Lumi AGM
• Agenda item appears

automatically During the voting

• Voting options appear in display
• Press button:

For Against Abstain

• Choice appears in display
• During voting you can change

your choice

• Last choice counts

Vóór de stemming

• U heeft ingelogd bij Lumi AGM
• Agenda item verschijnt

automatisch Tijdens de stemming

• Stemkeuzes verschijnen

in venster

• Maak uw keuze:

Vóór Tegen Onthouding

• Keuze verschijnt in venster
• Tijdens stemming kunt u uw

keuze wijzigen

• Laatste keuze geldt

53

Voting procedure / Stemprocedure

Voting device / Stemkastje

Prior to the voting

• Insert card with chip facing you
• Name appears on display

During the voting

• Voting options appear in display
• Press button:

1 = For 2 = Against 3 = Abstain

• Choice appears in display
• During voting you can change

your choice

• Last choice counts

Vóór de stemming

• Plaats kaart met chip naar voren
• Naam verschijnt in venster

Tijdens de stemming

• Stemkeuzes verschijnen in venster
• Maak uw keuze:

1 = Vóór 2 = Tegen 3 = Onthouding

• Keuze verschijnt in venster
• Tijdens stemming kunt u uw

keuze wijzigen

• Laatste keuze geldt

54

Adoption of the annual accounts 2017 3.5 Vaststelling van de jaarrekening 2017 3.5

Agenda item 3.5 / Agendapunt 3.5

Voting / stemming

55

Approval of the final dividend 2017 3.6 Goedkeuring van het slotdividend

• ver 2017

3.6

Agenda item 3.6 / Agendapunt 3.6

56

• Cash flows upstreamed to the holding are available to execute our strategy, to

fund operating expenses and to pay dividends to shareholders

• Aegon aims to pay a sustainable dividend to shareholders, which can grow
• ver time if performance of the company so allows
• Under normal circumstances, Aegon expects to declare an interim dividend

and propose a final dividend for approval at the AGM

Agenda item 3.6 / Agendapunt 3.6

Aegon’s dividend policy

57 0,10 0,11 0,11 0,12 0,13 0,13 0,11 0,11 0,12 0,13 0,13 0,14 2012 2013 2014 2015 2016 2017 Interim dividend Final dividend

• Proposed final dividend for 2017:

EUR 0.14 per common share

• Results in total dividend for 2017 of

EUR 0.27 per common share

• To be paid in cash or stock
• Value of stock dividend approximately

equal to cash dividend

• Intention to neutralize dilutive impact of

stock dividend

Agenda item 3.6 / Agendapunt 3.6

Aegon’s dividend proposal

Increasing dividends

(EUR) 0.21 0.22 0.23 0.25 0.26 0.27 +4%

58

Approval of the final dividend 2017 3.6 Goedkeuring van het slotdividend

• ver 2017

3.6

Agenda item 3.6 / Agendapunt 3.6

59

Approval of the final dividend 2017 3.6 Goedkeuring van het slotdividend

• ver 2017

3.6

Agenda item 3.6 / Agendapunt 3.6

Voting / stemming

60

Release from liability 4 Kwijting 4

Agenda item 4 / Agendapunt 4

61

Release from liability for the members

• f the Executive Board for their duties

performed during 2017

4.1

Verlenen van kwijting aan de leden van de Raad van Bestuur voor de uitoefening van hun taak in 2017

4.1

Agenda item 4.1 / Agendapunt 4.1

62

Release from liability for the members

• f the Supervisory Board for their

duties performed during 2017

4.2

Verlenen van kwijting aan de leden van de Raad van Commissarissen voor de uitoefening van hun taak in 2017

4.2

Agenda item 4.2 / Agendapunt 4.2

63

Release from liability 4 Kwijting 4

Agenda item 4 / Agendapunt 4

64

Release from liability for the members

• f the Executive Board for their duties

performed during 2017

4.1

Verlenen van kwijting aan de leden van de Raad van Bestuur voor de uitoefening van hun taak in 2017

4.1

Agenda item 4.1 / Agendapunt 4.1

Voting / stemming

65

Release from liability for the members

• f the Supervisory Board for their

duties performed during 2017

4.2

Verlenen van kwijting aan de leden van de Raad van Commissarissen voor de uitoefening van hun taak in 2017

4.2

Agenda item 4.2 / Agendapunt 4.2

Voting / stemming

66

Composition of the Supervisory Board 5 Samenstelling van de Raad van Commissarissen 5

Agenda item 5 / Agendapunt 5

67

Reappointment of Corien Wortmann-Kool 5.1 Herbenoeming van Corien Wortmann-Kool 5.1

Agenda item 5.1 / Agendapunt 5.1

68

Corien Wortmann-Kool

Age: 58 Nationality: Dutch Shares in the company: none Main occupation:

• Chairman of the Board of Stichting Pensioenfonds ABP

Membership of other Boards:

• Member Supervisory Board of Het Kadaster
• Member of Advisory Council of Centraal Bureau voor de

Statistiek

• Chairman of the Board of Trustees of Save the Children

Netherlands

• Vice President European People’s Party

Agenda item 5.1 / Agendapunt 5.1

69

Reappointment of Robert Dineen 5.2 Herbenoeming van Robert Dineen 5.2

Agenda item 5.2 / Agendapunt 5.2

70 Agenda item 5.2 / Agendapunt 5.2

Robert Dineen

Age: 68 Nationality: American Shares in the company: 10,000 Main occupation:

• Non-Executive Director

Main former occupation

• Vice Chairman of Lincoln Financial Network

Membership of other Boards:

• Non-Executive Chairman of the Board of Aretec Inc

71

Composition of the Supervisory Board 5 Samenstelling van de Raad van Commissarissen 5

Agenda item 5 / Agendapunt 5

72

Reappointment of Corien Wortmann-Kool 5.1 Herbenoeming van Corien Wortmann-Kool 5.1

Agenda item 5.1 / Agendapunt 5.1

Voting / stemming

73

Reappointment of Robert Dineen 5.2 Herbenoeming van Robert Dineen 5.2

Agenda item 5.2 / Agendapunt 5.2

Voting / stemming

74

Authorization of the Executive Board to issue shares in the context of replacing Solvency II grandfathered securities

6

Machtiging van de Raad van Bestuur tot uitgifte van aandelen ter vervanging van effecten die onder de overgangsregeling (grandfathering) van Solvency II vallen

6

Agenda item 6 / Agendapunt 6

75

• Aegon has substantial amount of grandfathered restricted Tier 1 securities outstanding
• To be replaced by a mix of Solvency II compliant securities and retained earnings
• Replacement required before year-end 2025
• Authorization assumes issuance of EUR 2 billion contingent convertible securities
• Approval required for issuance of common shares due to potential conversion of securities
• Conversion would only take place in case of extreme conditions
• Authorization would only be used in connection with issuance of restricted Tier 1 securities
• Flexibility is in the best interest of the company
• Authorization period of five years allows for orderly issuance when market conditions are favorable
• Aegon was strongly capitalized per year-end 2017

Agenda item 6 / Agendapunt 6

Replacement Solvency II grandfathered securities

Proposal summary

76 10.4 7.8 2.5 2.3 0.4

Eligible own funds SCR Unrestricted Tier 1 Restricted Tier 1 Tier 2 Tier 3

• Because of potential conversion, AGM approval needed

for issuance of common shares of up to 30% of capital for next five years

• Conversion would only take place if one of these

triggers is breached:

• Own Funds drop below 75% of SCR
• Own Funds drop below 100% of MCR
• Own Funds breach 100% of SCR, and compliance is not

re-established within three months

• Assumptions underlying the authorization:
• Principal of EUR 2 billion
• Share price at moment of issuance Restricted Tier 1 securities

EUR 4.30 (based on 52-week low) with current share price of EUR 5.88*

• 30% discount at conversion, in line with current market practice

Conversion

Agenda item 6 / Agendapunt 6

Quality of capital

(year-end 2017, in EUR billion and % of SCR)

201%

6% 30% 32% 134% * Closing share price Euronext Amsterdam at May 16, 2018.

77

Authorization of the Executive Board to issue shares in the context of replacing Solvency II grandfathered securities

6

Machtiging van de Raad van Bestuur tot uitgifte van aandelen ter vervanging van effecten die onder de overgangsregeling (grandfathering) van Solvency II vallen

6

Agenda item 6 / Agendapunt 6

78

Authorization of the Executive Board to issue shares in the context of replacing Solvency II grandfathered securities

6

Machtiging van de Raad van Bestuur tot uitgifte van aandelen ter vervanging van effecten die onder de overgangsregeling (grandfathering) van Solvency II vallen

6

Agenda item 6 / Agendapunt 6

Voting / stemming

79

Issuance and acquisition of shares

7

Uitgifte en verkrijging van aandelen

7

Agenda item 7 / Agendapunt 7

80

Authorization of the Executive Board to issue common shares

7.1

Machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen

7.1

Agenda item 7.1 / Agendapunt 7.1

81

Authorization of the Executive Board to restrict or exclude pre-emptive rights upon issuing common shares

7.2

Machtiging van de Raad van Bestuur tot beperking of uitsluiting van voorkeursrechten bij de uitgifte van gewone aandelen

7.2

Agenda item 7.2 / Agendapunt 7.2

82

Authorization of the Executive Board to issue common shares under incentive plans

7.3

Machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen in het kader van incentiveplannen

7.3

Agenda item 7.3 / Agendapunt 7.3

83

Authorization of the Executive Board to acquire shares in the Company

7.4

Machtiging van de Raad van Bestuur tot verkrijging van eigen aandelen

7.4

Agenda item 7.4 / Agendapunt 7.4

84

Issuance and acquisition of shares

7

Uitgifte en verkrijging van aandelen

7

Agenda item 7 / Agendapunt 7

85

Authorization of the Executive Board to issue common shares

7.1

Machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen

7.1

Agenda item 7.1 / Agendapunt 7.1

Voting / stemming

86

Authorization of the Executive Board to restrict or exclude pre-emptive rights upon issuing common shares

7.2

Machtiging van de Raad van Bestuur tot beperking of uitsluiting van voorkeursrechten bij de uitgifte van gewone aandelen

7.2

Agenda item 7.2 / Agendapunt 7.2

Voting / stemming

87

Authorization of the Executive Board to issue common shares under incentive plans

7.3

Machtiging van de Raad van Bestuur tot uitgifte van gewone aandelen in het kader van incentiveplannen

7.3

Agenda item 7.3 / Agendapunt 7.3

Voting / stemming

88

Authorization of the Executive Board to acquire shares in the Company

7.4

Machtiging van de Raad van Bestuur tot verkrijging van eigen aandelen

7.4

Agenda item 7.4 / Agendapunt 7.4

Voting / stemming

89

Any other business

8

Wat verder ter tafel komt

8

Agenda item 8 / Agendapunt 8

90

Closing

9

Sluiting

9

Agenda item 9 / Agendapunt 9

91

Thank you – Dank u wel

Closing / Sluiting

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